For the year ended January 31, 2023, Saga reported an underlying profit before tax of £21.5 million, within the guided range of £20 million to £30 million. Revenue growth rose by 54% from the previous year, driven by continued cruise and travel recovery following the COVID-19 pandemic.
Overall, Saga reported a written underlying profit before tax of £67.7 million for the year ended January 31, 2023, in line with the £66.6 million in the previous year. Total policies in force across all products as of January 31, 2023, was 1.7 million, 3% behind the prior year.
Meanwhile, the number of travel insurance policies sold during the same period was 103% ahead of the previous year, achieving revenue growth of over 200%.
For the year ended January 31, 2023, Saga’s underwriting business reported an underlying profit before tax of £19.1 million, including underlying prior year reserve releases of £25.1 million.
As indicated in the group’s January trading update, the current year underlying combined operating ratio – excluding the impact of its quota share reinsurance arrangements – was 125.8%, up from 96.3% in the previous year. This latest figure reflects the unwind of COVID-19 frequency benefits, a sharp rise in claims inflation, and an above-average level of current year large losses.
Commenting on the latest figures, Saga group CEO Euan Sutherland said the group delivered its strategy successfully while achieving significant revenue growth and returning to underlying profit despite the challenging market over the past year.
“Our insurance underwriting business took pricing action to reflect the rise in claims inflation, while our insurance broking business navigated a challenging landscape, adjusting to significant regulatory changes and increased competitive pressure,” Sutherland said. “We also took a number of key steps to reposition the business, consistent with the strategy we set out 12 months ago to create ‘The Superbrand’ for older people.”
For the next 12 months, Saga aims to strengthen its financial position.
